Customer Relationship Management 6

What are the conditions of CRM?

CRM conditions
The organization and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both parties;

Organizations need to make a profit to survive and grow
Customers want good service, a quality product and an acceptable price
Good CRM can influence both sets of conditions.

Why do organizations undertake CRM?

CRM is a new concept to many organizations.
If it's new to you, here's why most forward-thinking organizations devote lot of energy and resources to the set up and management of a CRM capability.

How CRM impacts on the organization?
CRM can have a major impact on an organization through:
1. shifting the focus from product to customer
2. streamlining the offer to what the customer requires, not want
the organization can make highlighting competencies required
for an effective CRM process

Why does the organization need CRM?

The ultimate purpose of CRM, like any organizational initiative, is to increase profit. In the case of CRM this is achieved mainly by providing a better service to your customers than your competitors. CRM not only improves the service to customers though; a good CRM capability will also reduce costs, wastage, and complaints (although you may see some increase initially, simply because you hear about things that without CRM would have stayed hidden).

Effective CRM also reduces staff stress, because attrition - a major cause of stress - reduces as services and relationships improve. CRM enables instant market research as well: opening the lines of communications with your customers gives you direct constant market reaction to your products, services and performance, far better than any market survey. Good CRM also helps you grow your business: customers stay with you longer; customer churn rates reduce; referrals to new customers increase from increasing numbers of satisfied customers; demand reduces on fire-fighting and trouble-shooting staff, and overall the organization's service flows and teams work more efficiently and more happily.
features of good CRM

quoted from wikipidea